Nonfarm payrolls weather sensitive sectors in October

Theresa Sheehan

While the Bureau of Labor Statistics doesn’t quantify the impact of major weather events on the monthly employment data, it is possible to tease out where some of those impacts may have occurred. Certain industries do tend to be associated with outdoor activity that could be affected, where supply chains may be disrupted, and where temporary workers may be needed to aid recovery efforts.

An effective calculation is to add up construction, retail, transportation and warehousing, social assistance, and administration less temporary help. The resulting total of weather sensitive industries as a share of total employment then gives an idea of what the storm impact was. In October, these may reduced nonfarm payrolls by about 25 percent.

 

About the Author: Theresa Sheehan

Terry has followed the US economic data for over 35 years. First working with economic databases at McGraw/Hill-Data Resources, then as an economic data reporter at Market News International, and later as an analyst at Stone McCarthy Research Associates. She is deeply familiar with the major high-frequency data reports that drive the financial news cycle. She has followed the ins-and-out of the Board of Governors and District Bank Presidents, and developments in monetary policy as conditions have changed since the Volcker years. Terry is a graduate of the University of Maryland University College with bachelor’s degrees in English, Information Management, and Psychology.

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